India, with its large pool of talented professionals and specialized domain workers, is quickly becoming the central hub for what is known as Knowledge Process Outsourcing (KPO). The KPO sector, which involves the outsourcing of knowledge intensive services that deal with the creating, sharing, maintaining, tracking and disseminating of knowledge, is an outgrowth of the hugely successful BPO sector, of which India holds a large market share of nearly 70%.
The Indian KPO sector offers clients a wide range of services among various industry verticals. Apart from IT/ ITES related services, the KPO industry provides several knowledge-based solutions such as Engineering services, Web Application development, CAD/ CAM Applications, Legal Processes, Intellectual Property and Patent Services, Business Research and Analytics, Legal Research, Clinical Research, Publishing, Market Research, etc. That's the reason why KPO is also known as business research process.
With the current highly competitive market scenario, many companies and organizations are making the choice to focus on core competency areas and outsource all other non-core areas. This gives them the advantage of minimizing their costs, improving their efficiencies and shifting the focus onto other key growth areas of the business activity. Outsourcing knowledge-based services offer companies greater benefits as they provide domain-based processes and advanced analytical skills, rather than just process expertise.
The Indian KPO sector offers organizations the choice of a multitude of knowledge-based services across various verticals. Indian outsourcing companies are experts in:
India possesses a large number of specialized domain experts such as engineers, doctors, CAs, lawyers, CAD/ CAM experts, architects, biotechnologists, economists, statisticians and MBAs. Tapping into this talent pool allows overseas companies to gain superior quality services at cost-effective prices. On the Indian side, KPO salaries tend to be 25–30% higher when compared to those offered to specialized domain experts, encouraging more knowledge-based professionals to enter the KPO industry.
The National Association of Software & Service Companies (NASSCOM) has predicted that India will acquire a 70% share in the growing KPO Industry. A study by Assocham has predicted the growth rate of around 25–27% in 2012 for the KPO sector. If these figures prove to be correct, we have a reason to believe that the future of KPO is bright in 2013 as well. Another main contributor to the KPO boom is the BPO sector itself, which will contribute nearly 50% towards the newly developing KPO industry. This is because of the metamorphosis of many call centers into KPO centers, which are now offering extra value-added KPO services along with their regular BPO work.
With Indian KPO companies experiencing a tremendous growth phase, the industry will have to focus on developing a stronger base of qualified KPO professionals. Professionals in the fields of engineering, medicine, law, management, accountancy, etc., will have to be recruited and trained to fill this growing need. Another challenge faced by India is the emerging competition from new entrants into the field, such as Russia, China, the Czech Republic, Ireland and Israel. Outsourcing companies dealing with KPO will have to invest in the latest technology and infrastructure, acquire better talent and provide higher quality standards in order to remain industry leaders.
Established in 2002, Outsource2india is a premium outsourcing company headquartered in Bangalore, India. Our specialized KPO departments offer customized services that cover a wide range of industry verticals. All of our services come at cost-competitive prices that help you make significant cost savings and focus on core competencies.
Contact us to find out more about the different KPO services O2I offers.